The industrial insurer HDI Global SE - part of the Talanx Group - has become the latest to report its financial results for H1 2023. In a period described as a “positive first half” by CEO Dr Edgar Puls (pictured), HDI Global SE’s combined ratio improved 1% year-on-year to 93.1%, which is below its stated medium-term target of 95%.
In a Press release, the insurer revealed insurance revenues of €4.2 billion for the half-year period which it said was partly down to growth in its property and liability business, as well as to an increase in its specialty risks business, which generated insurance revenue of €1.4 billion, up from €1.3 billion last year.
Meanwhile, the division’s operating profit (EBIT) increased by 9.7% to €190 million, up from €174 million in the prior year. Puls noted that while the impact of inflation and high claims inflation is still being felt, HDI Global SE is in a strong position to face the “variety of ongoing challenges in the remainder of the year with confidence”.
“The results have been achieved in difficult times,” he said. “To name just a few of the challenges, social inflation continues to rise in liability claims, we are seeing an ongoing high number of cyberattacks, and nat-cat events continue to occur with considerable frequency all around the world.
“On a positive note, we have noticed the amount of man-made high-volume losses returning to a more normal level.”
The firm’s insurance service result rose to €292 million, up from €226 million in the same period last year which was attributed to lower frequency losses, lower large loss payments and higher interest rates leading to positive discounting effects in loss reserves. Meanwhile, large loss payments were €134 million, compared to €174 million in the prior-year period.
“Our business development and positive results show that the measures taken in the past were appropriate”, Puls said. “Although we are now seeing global supply chains stabilising, many challenges remain. The accelerated transformation towards carbon-free technologies poses new risks for our clients. We consider it part of our purpose to partner up with them during such transformational times and to be at the forefront of insuring new technologies.
“This means staying close to our clients’ business on site and putting the emphasis on risk management and prevention with our tailor-made solutions and leading expertise, e.g. in risk consulting and international programmes. We will continue to serve our broker partners and our clients reliably and predictably wherever they conduct their business.”
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